NYSE:MGM

Stock Analysis Report

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Executive Summary

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau.


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has MGM Resorts International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

MGM

3.9%

US Hospitality

4.0%

US Market


1 Year Return

-42.2%

MGM

-28.5%

US Hospitality

5.0%

US Market

Return vs Industry: MGM underperformed the US Hospitality industry which returned -28.5% over the past year.

Return vs Market: MGM underperformed the US Market which returned 5% over the past year.


Shareholder returns

MGMIndustryMarket
7 Day-0.7%3.9%4.0%
30 Day-23.1%-12.6%-1.1%
90 Day22.6%36.2%21.1%
1 Year-41.2%-42.2%-27.0%-28.5%7.2%5.0%
3 Year-43.7%-46.4%-18.0%-23.3%36.0%27.1%
5 Year-6.2%-11.4%0.7%-10.2%65.3%46.9%

Price Volatility Vs. Market

How volatile is MGM Resorts International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MGM Resorts International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGM ($16.71) is trading below our estimate of fair value ($61.72)

Significantly Below Fair Value: MGM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGM is good value based on its PE Ratio (3x) compared to the Hospitality industry average (21.2x).

PE vs Market: MGM is good value based on its PE Ratio (3x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: MGM is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: MGM is good value based on its PB Ratio (1x) compared to the US Hospitality industry average (1.7x).


Next Steps

Future Growth

How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGM's forecast earnings growth (19.5% per year) is above the savings rate (2.2%).

Earnings vs Market: MGM's earnings (19.5% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: MGM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGM's revenue (19.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: MGM's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has MGM Resorts International performed over the past 5 years?

41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGM has a large one-off gain of $3.6B impacting its March 31 2020 financial results.

Growing Profit Margin: MGM's current net profit margins (24.5%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: MGM has become profitable over the past 5 years, growing earnings by 41.4% per year.

Accelerating Growth: MGM's earnings growth over the past year (1018.9%) exceeds its 5-year average (41.4% per year).

Earnings vs Industry: MGM earnings growth over the past year (1018.9%) exceeded the Hospitality industry -30.8%.


Return on Equity

High ROE: MGM's Return on Equity (21%) is considered high.


Next Steps

Financial Health

How is MGM Resorts International's financial position?


Financial Position Analysis

Short Term Liabilities: MGM's short term assets ($7.6B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: MGM's short term assets ($7.6B) do not cover its long term liabilities ($23.1B).


Debt to Equity History and Analysis

Debt Level: MGM's debt to equity ratio (88.5%) is considered high.

Reducing Debt: MGM's debt to equity ratio has reduced from 189% to 88.5% over the past 5 years.

Debt Coverage: MGM's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: MGM's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

What is MGM Resorts International current dividend yield, its reliability and sustainability?

0.059%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGM's dividend (0.059%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: MGM's dividend (0.059%) is low compared to the top 25% of dividend payers in the US market (4.5%).


Stability and Growth of Payments

Stable Dividend: MGM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MGM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MGM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Bill Hornbuckle (62yo)

0.33

Tenure

US$6,289,556

Compensation

Mr. William Joseph Hornbuckle, IV, also known as Bill, has been Executive Chairperson of MGM China Holdings Limited since March 26, 2020. He has been Chief Executive Officer of Marina District Development  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD6.29M) is about average for companies of similar size in the US market ($USD7.33M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Hornbuckle
President & Acting CEO0.33yrUS$6.29m0.078% $6.4m
Corey Sanders
CFO & Treasurer1.33yrsUS$5.89m0.091% $7.5m
John McManus
Executive VP12yrsUS$3.03m0.027% $2.2m
Atif Rafiq
President of Commercial & Growth1.25yrsUS$4.89m0.0038% $310.7k
Robert Selwood
Executive VP & Chief Accounting Officer12.92yrsUS$1.21m0.037% $3.0m
Catherine Park
Executive Director of Investor Relations5.5yrsno datano data
Debra DeShong
Senior VP of Global Corporate Communicationsno datano datano data
Ann Hoff
Chief Marketing Officer0.17yrno datano data
Laura Lee
Senior Vice President of Human Resources0.92yrno datano data
Alan Feldman
Executive Vice President of Global Government & Industry Affairsno datano datano data

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MGM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Salem
Independent Chairman0.33yrUS$293.20k0.31% $25.3m
Gregory M. Spierkel
Independent Director7.25yrsUS$313.20k0.0032% $267.9k
John Kilroy
Independent Director3.5yrsUS$293.20k0.0017% $143.4k
Rose McKinney-James
Independent Director15.5yrsUS$323.20k0.0015% $126.9k
Roland Hernandez
Lead Independent Director10.5yrsUS$373.20k0.0092% $759.1k
Alexis Herman
Independent Director18.5yrsUS$313.20k0.0050% $409.6k
Janet Swartz
Independent Director2.33yrsUS$293.20k0.0024% $199.4k
Daniel Taylor
Independent Director13.33yrsUS$308.20k0.00033% $27.2k
William Grounds
Director7.42yrsUS$245.70k0.0021% $176.4k
Mary Jammet
Independent Director6.42yrsUS$293.20k0.0051% $422.0k

7.3yrs

Average Tenure

63yo

Average Age

Experienced Board: MGM's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MGM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MGM Resorts International's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGM Resorts International
  • Ticker: MGM
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$8.242b
  • Shares outstanding: 493.22m
  • Website: https://www.mgmresorts.com

Number of Employees


Location

  • MGM Resorts International
  • 3600 Las Vegas Boulevard South
  • Las Vegas
  • Nevada
  • 89109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGMNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1988
MGM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1988
MGGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1988
0JWCLSE (London Stock Exchange)YesCommon StockGBUSDMay 1988
M1GM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLJan 2020

Biography

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company’s casino operations include slots, table games, and race and sports book wagering. As of March 22, 2020, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Las Vegas Strip Resorts, Primm Valley Golf Club, and Fallen Oak golf course. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 23:54
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.